Brief Summary of Bill

Ties the career and technical education (CTE) funding for materials, supplies, and operating costs (MSOC) to the general education funding for MSOC by setting a rate in statute for CTE that is equal to a specified multiplier of the general education funding.
Specifies the allowable uses for CTE and skill center MSOC funds.
Specifies a maximum indirect cost of 5 percent.

Background: Career and Technical Education. CTE consists of planned programs of courses that includes exploration and preparation of career options. The Office of the Superintendent of Public Instruction (OSPI) estimates that approximately 67,707 students in grades 7-12 will enroll in CTE courses in the 2017-18 school year.

Skill Centers. Skill centers are regional secondary schools that serve high school students from multiple school districts. They provide instruction in preparatory CTE programs that are either too expensive or too specialized for school districts to operate individually. Currently, there are 14 skill centers in Washington State: Clark County Skills Center, Vancouver; New Market Skills Center, Tumwater; NEWTECH Skills Center, Spokane; North Olympic Peninsula Skills Center, Port Angeles; Northwest Career and Technical Academy, La Conner; Pierce County Skills Center, Bethel; Puget Sound Skills Center, Burien; Seattle Public Schools Skills Center, Seattle; Sno-Isle Tech Skills Center, Everett; Tri-Tech Skills Center, Kennewick; WaNIC Skills Center, Kirkland; Wenatchee Valley Technical Skills Center, Wenatchee; West Sound Technical Skills Center, Bremerton; and Yakima Valley Technical Skills Center, Yakima.

Funding. Historically, state funding for employee and non-employee costs for CTE and skill centers have been at an enhanced funding level to provide for expensive and specialized equipment; smaller class sizes because of safety concerns; more individualized instruction; more staff time required for the student leadership component; instructor skill training; coordination with business, community, and industry; and the supervision of student work programs.

Since the prototypical school funding statute went into effect, the general education amount provided for MSOC has been annually increased to meet a 2015-16 enhanced funding target set in statue. However, the CTE and skills centers MSOC is established in the operating budget and has not been increased.

The maximum indirect cost allowed by the CTE and skills center programs is 15 percent.

Summary of Bill: The CTE funding for MSOC is linked to the general education funding for MSOC by setting a rate in statute for CTE that is equal to a specified multiplier of the general education funding.

Allowable uses for CTE and skill center MSOC funds is specified. The maximum indirect cost is established at 5 percent for the stated purpose of ensuring that the funds are used to the greatest extent possible for their intended purpose.

Staff Summary of Public Testimony: PRO: This bill is a great way to enhance state funding for CTE and provide guidance on where it should be spent. It is necessary to create equity and access to the education and economic benefits that CTE provides our students and our business and industries in Washington. Employers are struggling to find employees that have basic employability skills that are taught in CTE. CTE-prepared students are ready now to be employed in fantastic jobs, like carpenters, laborers, welders, electricians, with a good wage. Economically it will make us a better state.

By changing the funding formula it provides dependable and equitable funding for school districts and recognizes the additional expenses for MSOC in CTE programs. The increased funding in the second biennium will allow school districts time to plan for expansion of CTE programs. Capping the indirect costs will enable more of the CTE funding to get into the classrooms.

Online CTE courses do exist. But the funding for CTE has been disconnected from the ALE online courses. We ask you reconnect the two so that the increased CTE funding could be helpful in expanding online courses.

We hope we can work with you to avoid any unintended consequences from occurring. The allowable uses for the CTE MSOC funding is too narrow and CTE programs need greater flexibility to spend the funding.

Persons Testifying: PRO: Senator Christine Rolfes, Prime Sponsor; Senator Ann Rivers, co-sponsor; Shani Watkins, Past President - Washington Association of Career and Technical Administrators; Gene Wachtel, President - Washington Association for Career and Technical Education; Tazia Stoudt, Student - West Sound Tech Skills Center; Larry Brown, IAM751 Aerospace Machinists Legislative and Political Director; Bob Adams, Senior Vice President Guy F. Atkinson Construction; Mike Sotelo, Co-Founder ECCC Ethnic Chambers of Commerce Coalition, President and CEO of Consolidar Network; Carolyn Logue, K12, Inc.; Amy Anderson, Association of WA Business; Lorrell Noahr, Washington Education Association; John Page, Tacoma School District No. 10; T.J. Kelly, The Superintendent of Public Instruction; Caroline King, Washington STEM/Chief Policy and Strategy Officer; Ben Rarick, SBE; Tom Davis, WA Farm Bureau; David Powell, Stand for Children.